Excerpt from Barron's Article RE: Treasuries 18-Jun-11 08:44 am What's your response to the Treasury bulls?
Hickey: It's hard to find anyone who's really bullish on Treasuries. But we've seen interest rates keep going lower. It's to a point where in order to keep yields at this level, you are going to have to see a real downturn in the economy, which we don't think is going to happen. There's an argument that a big chunk of demand is going to drop out of the market in the next month or so, when QE2 [quantitative easing, part 2] ends and the Fed stops buying Treasuries. But in order to sustain yields at these low levels, investors must be expecting a real drop-off in economic activity, which we don't see.